Friday, 28 April 2023 00:03
5 Small Business Attraction and Retention Trends for 2023
Written by Kristen RussellEmployers of all sizes are currently facing attraction and retention challenges. These challenges will likely continue through 2023. Successful efforts to win over employees can require a time investment and carry high costs. Unfortunately, small businesses often don’t have excess resources to invest in attraction and retention efforts in today’s worker-friendly labor market; however, they have the agility to respond to the employment market with new strategies. Amid current labor obstacles, many smaller employers are focusing on what’s feasible in 2023.
To aid in developing effective attraction and retention strategies, small businesses can consider the following five trends for 2023:
1. Focusing on benefits—Last year’s labor challenges revealed how offering competitive benefits is critical when vying for talent. The importance of employee benefits is expected to increase in 2023. With the current economic downturn, small employers likely have limited funds for benefits this year. As a result, many smaller organizations are tailoring their benefits offerings to meet the specific demands of current and prospective employees, including offering nontraditional benefits (e.g., financial wellness programs and pet insurance). The best benefits offerings will vary in each organization depending on the needs of the workforce, but they can be leveraged to attract and attain the right employees.
2. Creating opportunities for advancement—In 2022, many small businesses focused on up skilling employees and providing avenues for career advancement out of necessity to address their labor challenges. Creating paths for career growth has proven to be one of the most effective employee retention strategies since employees generally feel more satisfied at work when they’re provided opportunities to learn new skills and gain experience. Due to the current economic uncertainty, this will remain a key attraction and retention strategy for small businesses in 2023.
3. Offering a flexible work environment—Surveys overwhelmingly indicate that many employees continue to prefer flexible work options afforded to them since the outset of the COVID- 19 pandemic. These offerings include work- from-home arrangements, hybrid work schedules and flexible work schedules. The feasibility of a small organization being able to offer these types of flexible arrangements will vary, but these offerings remain a priority for many workers today.
4. Building a strong workplace culture—In 2023, more employees are prioritizing working for organizations with a strong culture. Even if resources are limited, small employers can foster a desirable workplace. A strong and healthy workplace culture can help retain employees and, in turn, create an environment that’s attractive to prospective employees. This may include training managers to identify employee burnout, designate fair workloads, be transparent about pay and create an inclusive environment. 5. Improving employee recognition—Many employers prioritized employee recognition programs, such as celebrating anniversaries and milestones, to improve retention rates in 2022. These programs allow organizations not only to celebrate outstanding employees but also to signal to others that their hard work doesn’t go unnoticed. As these efforts don’t carry high costs, they’ll be an effective retention strategy for small businesses in 2023.
Like most organizations, small employers face a set of challenges with attracting and retaining the employees they need in 2023. Fortunately, small businesses have the ability to stay agile and should consider what strategies they can leverage to compete in today’s labor market.
Reach out to Fall River Employee Benefits, An Alera Group Company to learn more about these trends.
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Kristen Russell
Kristen founded Fall River Employee Benefits as the culmination of her insurance industry career as an actuary, underwriting executive & consultant. As an Assistant Vice President at Great-West Healthcare (now part of CIGNA), she managed a $1 Billion block of health insurance. She also worked as a Senior Consultant at Reden & Anders, consulting to insurance companies and large employers throughout the country. Ms. Russell received a Bachelor of Science, Business Administration in Actuarial Science, is a member of the American Academy of Actuaries and achieved Fellowship in the Society of Actuaries through a rigorous nine-year series of exams.
Kristen grew up in Iowa but has lived in Colorado since 1993, currently living near our office in the Lower Highlands neighborhood near downtown Denver. She enjoys bicycling, hiking, traveling and has a special passion for non-profit volunteering. She is married to an incredibly talented photojournalist, has two adult stepdaughters and an adorable Border Collie/Lab mix named Chaco.